Pricing · markup guide
50% markup: margin and selling price
A 50% markup means the selling price is your cost plus 50% of that cost, so you multiply the cost by 1.5. It gives a profit margin of 33.33%, because the profit is measured against the higher selling price. An item that costs £100 sells for £150.00 and makes £50.00 profit.
VAT rate checked against GOV.UK on .
Profit margin
33.33%
from a 50% markup
Multiply cost by
1.5
to get the price ex VAT
Price on £100 cost
£150.00
before VAT
With 20% VAT
× 1.8
cost to shelf price
Selling prices with a 50% markup
Price with VAT assumes you are VAT registered and the item is standard-rated at 20%.
| Cost | Selling price | Profit | Price with VAT |
|---|---|---|---|
| £1.00 | £1.50 | £0.50 | £1.80 |
| £5.00 | £7.50 | £2.50 | £9.00 |
| £10.00 | £15.00 | £5.00 | £18.00 |
| £25.00 | £37.50 | £12.50 | £45.00 |
| £50.00 | £75.00 | £25.00 | £90.00 |
| £100.00 | £150.00 | £50.00 | £180.00 |
| £250.00 | £375.00 | £125.00 | £450.00 |
| £1,000.00 | £1,500.00 | £500.00 | £1,800.00 |
Nearby markups
Markup, the margin it gives and the multiplier to use on your cost.
| Markup | Margin | Multiplier |
|---|---|---|
| 30% | 23.08% | × 1.3 |
| 35% | 25.93% | × 1.35 |
| 40% | 28.57% | × 1.4 |
| 45% | 31.03% | × 1.45 |
| 55% | 35.48% | × 1.55 |
| 60% | 37.5% | × 1.6 |
| 65% | 39.39% | × 1.65 |
| 70% | 41.18% | × 1.7 |
Markup is not the same as margin
People often mix these up. A 50% markup is a 33.33% margin. If you actually want a 50% margin, you need a markup of 100%, so the price is cost × 2.
How far you can discount
With a 50% markup you can take up to 33.33% off the selling price before you are selling at cost. A 10% discount leaves a margin of 25.93%, and 20% off leaves 16.67%.
Adding VAT
If you are VAT registered and sell at the 20% standard rate, add VAT after the markup. That makes the shelf price cost × 1.8. The VAT goes to HMRC, so it does not change your 33.33% margin.
Profit in each pound of sales
Gross profit is exactly a third of each pound you take before VAT, and the goods cost you the other 67p. After a 10% discount you would need to sell about 43% more units to make the same gross profit as at full price.
How far apart the markup and margin are
At this level the two figures are far apart: the margin is 16.67 percentage points below the markup. On a £100 cost, pricing for a true 50% margin would mean charging £200.00 instead of £150.00. Another 10 points of markup would add 4.17 percentage points of margin.
Other markups
- 35% markup (25.93% margin)
- 40% markup (28.57% margin)
- 45% markup (31.03% margin)
- 55% markup (35.48% margin)
- 60% markup (37.5% margin)
- 65% markup (39.39% margin)
Common questions
What margin is a 50% markup?
33.33%. Divide the markup by 100 plus the markup: 50 ÷ 150 = 33.33%.
How do I add a 50% markup to a price?
Multiply the cost by 1.5. For example, £40 × 1.5 = £60.00. In Excel or Google Sheets, with the cost in A2, use =A2*1.5.
What is a 50% markup on £100?
£50 of profit, so the selling price is £150.00 before VAT, or £180.00 with 20% VAT added.
How do I work out the cost from a price with a 50% markup?
Divide the selling price by 1.5. A price of £60 means a cost of £40.00. If the price includes 20% VAT, divide by 1.2 first.
Sources and assumptions
- Markup = profit ÷ cost. Margin = profit ÷ selling price. Both use prices before VAT.
- Cost means what you pay for the item, excluding any VAT you can reclaim.
Figures are rounded to the nearest penny or to two decimal places.